A firm that employs relatively large amounts of labor-saving equipment in its operations will have a relatively ____ degree of operating leverage.

A) low
B) constant
C) insignificant
D) high

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume.

Labor-saving Equipment

Tools or machinery designed to reduce the amount of labor needed to perform a job, often leading to enhanced efficiency and lower labor costs.